Risk Management For The International Factoring Business Of Commercial Banks

International Factoring is also called the off-take accounts receivable. It is a new type of international trade settlement way after Remittance, Collection and Letter of Credit. At present, International Factoring has developed into one of the mainstream in international trade settlement ways with the popularity of O/A. The balance of China’s enterprises’ accounts receivable has reached billions of dollars and continues to grow according to the data of China’s Ministry of Commerce. International Factoring in our country has a great potential for development.Factors usually face huge risks because of the complexity of the International Factoring Business. Commercial Banks now occupy the main position in China’s International Factoring Business. This paper chooses two of the most typical ways---Export Non-recourse Factoring and Import Non-recourse Factoring as representatives based on the summary of the main form of International Factoring in China. Then the paper analyses the risks of Commercial Banks in carrying out International Factoring Business form the perspective of risk formation.Then the paper chooses Signaling Game Model and Evolutionary Game Model for the game analysis.At the same time,the paper makes a further explanation of game analysis through case analysis.At last,this paper gives suggestions for risk avoidance and management of Commercial Banks on the basis of the risk analysis and game analysis.